Chinese President Xi Jinping announced in a speech Tuesday that he would aim to “significantly lower” auto import tariffs, perhaps signaling a win for the Trump administration in its ongoing trade war with China.
Jinping did not mention Trump’s threat of tariffs in his announcement, according to the Associated Press, but promised to open Chinese markets and improve trade conditions abroad “as soon as possible.”
President Donald Trump recently announced that he intended to impose tariffs on about $50 billion in Chinese imports, citing the United States’ massive trade deficit with the country. China responded in kind last week, imposing a 25 percent tariff on 106 American products, including soybeans, airplanes and cars. (RELATED: China Opens Fire On Roughly $50 Billion In US Exports As Trade Spat Heats Up)
Trump shot back, stating that he would be willing to consider an additional $100 billion worth of tariffs on Chinese goods. The stock market fluctuated in response to this news. However, Trump said he was not worried about the markets because he believes the United States will benefit in the long term. (RELATED: Trump Promises Long Term Wins Over China With Tariffs)
“We may take a hit and, you know what, ultimately we’re going to be much stronger for it. But it’s something we had to do,” the president said last Friday. “Now it’s $500 billion in deficits and a theft of $300 billion in intellectual property. So you can’t have this.”
If President Jinping follows through on his promise to lower auto tariffs, it could be a sign that Trump’s strategy is working.